The emerging aversion to inequality – Evidence from long subjective data

Pre-print, Working paper: This paper provides evidence of a change in the relationship between individual satisfaction with the state of country's economy and income inequality during transition from a command to market economic system. Using data from a series of extensive and frequent surveys of Polish population, we identify a structural break in this relationship. In the beginning of transition, an increase in income inequality is interpreted by population as a positive signal of increased opportunities; this sentiment is particularly strong among older people and people with right-wing political views. Later in the transition period, increased inequality becomes an important reason for dissatisfaction of the public with the country's economic situation and reforms, as people become more skeptical about the legitimacy of income generation process. We also provide direct evidence from opinion polls of a change in the public sentiment about income inequality.

Author(s)

Irena Grosfeld, Claudia Senik

Date of publication
  • 2009
Keywords JEL
C25 D31 D63 I30 P20 P26
Keywords
  • Inequality
  • Subjective well-being
  • Growth
  • Breakpoint
  • Transition
Internal reference
  • PSE Working Papers n°2008-19
Version
  • 1